Iowa Code § 496B.1
Title of Act
This chapter shall be known and may be cited as the “Iowa Economic Development Act”.
Iowa Code Chapter 496B — Economic Development Corporations
Iowa · statute · Iowa Code ch. 496B · 18 active provisions
Iowa Code § 496B.2
Definitions
As used in this chapter, unless the context otherwise requires, the term: 1. “Authority” means the economic development authority created in section 15.105, or any entity which succeeds to the functions of the authority. 2. “Board of directors” means members of the board of directors of a development corporation consti…
Iowa Code § 496B.3
Authorized corporations
There is hereby authorized to be incorporated under the Iowa business corporation Act, chapter 490, development corporations which meet and comply with the requirements of this chapter. Such corporations shall be subject to and have the powers and privileges conferred by the provisions of this chapter and those provisi…
Iowa Code § 496B.4
Offices
A development corporation may have offices in such places within the state of Iowa as may be fixed by the board of directors.
Iowa Code § 496B.5
Purposes
The purposes of a development corporation shall be limited to those provided in this section and shall be to promote, stimulate, develop and advance the business prosperity and economic welfare of the state of Iowa and its citizens; to encourage and assist through loans, investments, or other business transactions, the…
Iowa Code § 496B.6
Powers
Any development corporation shall, subject to the restrictions and limits herein contained, have the following powers: 1. To make contracts and incur liabilities for any of the purposes of the development corporation; provided that no development corporation shall incur any secondary liability by way of guaranty or end…
Iowa Code § 496B.7
Stock — limitations
Capital stock shall be issued only on receipt by each development corporation of cash in such amount not less than the par value thereof as may be determined by the board of directors. No shareholder of any development corporation shall be entitled as of right to purchase or subscribe for any unissued or treasury share…
Iowa Code § 496B.8
Stockholders’ privileges
Notwithstanding any rule at common law or any provision of any general or special law or any provision in their respective articles of incorporation, agreements of association, or trust indentures: 1. Any person, as defined in the Iowa business corporation Act, chapter 490, is hereby authorized to acquire, purchase, ho…
Iowa Code § 496B.9
Loan procedures
A financial institution may request membership in a development corporation by making application to the board of directors thereof on such form and in such manner as such board of directors may require, and membership shall become effective upon acceptance of such application by said board. Each member of any developm…
Iowa Code § 496B.10
Duration of membership
Membership in any development corporation shall be for the duration of the respective development corporation; provided, however, that upon written notice given to the development corporation five years in advance a member thereof may withdraw from membership in such corporation at the expiration date of such notice. P…
Iowa Code § 496B.11
Powers of shareholders
The shareholders and the members of the development corporation shall have the following powers of such corporation: 1. Those powers granted in the Iowa business corporation Act, chapter 490, which are not inconsistent with the provisions of this chapter. 2. To determine the number and elect directors as provided herei…
Iowa Code § 496B.12
Articles amended
1. The articles of incorporation of any development corporation may be amended by the votes of the shareholders and the members thereof voting separately by classes. 2. Any amendment shall require approval by the affirmative vote of two-thirds of the votes to which the shareholders shall be entitled and two-thirds of t…
Iowa Code § 496B.13
Board of directors
1. The board of directors shall consist of such number not less than fifteen as shall be determined in the first instance by the incorporators and thereafter annually by the members and the shareholders at each annual meeting or at any special meeting held in lieu of the annual meeting. At each annual meeting or at any…
Iowa Code § 496B.14
Earned surplus set aside
Each year each development corporation shall set apart as earned surplus not less than ten percent of its net earnings for the preceding fiscal year until such surplus shall be equal in value to one-half of the amount paid in on the capital stock then outstanding. Whenever the amount of surplus established herein shall…
Iowa Code § 496B.15
Deposit of funds
No development corporation shall deposit any of its funds in any financial institution unless such institution has been designated as a depository by a vote of a majority of the directors present at any authorized meeting of the board of directors exclusive of any director who is an officer or director of the depositor…
Iowa Code § 496B.17
Certificate to do business
Upon the approval of the authority as required in this chapter and the issuance of a certificate as provided in the Iowa business corporation Act, chapter 490, a development corporation shall then be authorized to commence business and to issue stock thereof to the extent authorized in its articles of incorporation.
Iowa Code § 496B.19
Dissolution
A development corporation may be dissolved upon the affirmative vote of two-thirds of the votes to which the shareholders thereof shall be entitled and two-thirds of the votes to which the members shall be entitled. Upon any dissolution of a development corporation, none of the corporation’s assets shall be distributed…
Iowa Code § 496B.20
State credit not available
Under no circumstances is the credit of the state of Iowa pledged herein.